NEW YORK, Oct 5 Oil prices surged on Wednesday
after a report showed a drop in U.S. crude stockpiles, fuelling
energy shares and helping lift Wall Street after two down
sessions.

In Europe, bond yields jumped while pan-European STOXX index
slumped 0.6 percent, with markets rattled by the
prospect of the region's central bank eventually winding down
its bond-buying stimulus.

Oil prices rose to their highest since June after the U.S.
government reported another surprise weekly drawdown in crude
inventories.

The U.S. Energy Information Administration (EIA) said crude
stockpiles fell nearly 3 million barrels for the week ended
Sept. 30, marking a fifth straight weekly drop. Analysts polled
by Reuters had forecast a build of 2.6 million barrels.

Brent crude was up 2.1 percent, at $51.94 a barrel,
while U.S. West Texas Intermediate crude rose 2.3 percent
at $49.83.

The Dow Jones industrial average rose 111.34 points,
or 0.61 percent, to 18,279.79, the S&P 500 gained 9.25
points, or 0.43 percent, to 2,159.74 and the Nasdaq Composite
added 30.66 points, or 0.58 percent, to 5,320.31.

The energy sector gained 1.5 percent.

U.S. stocks have been pressured this week by concerns over
Britain's exit from the European Union and expectations of a
Federal Reserve interest rate increase in the coming months.

Chicago Federal Reserve Bank President Charles Evans said he
would be "fine" with raising U.S. interest rates by year-end if
U.S. economic data continued to come in firm.

Traders see a 64-percent chance the Fed will hike at its
December meeting, according to the CME FedWatch website.

"People are certainly waiting for that inevitable interest
rate rise by the Fed, but I think they're just not sure if
that's a sign that things are better and earnings are likely to
improve, or a reason for people to sell stocks because rates are
rising," said Rick Meckler, president of LibertyView Capital
Management in Jersey City, New Jersey.

"I am surprised at the reaction, but it's just this notion
that the ECB may be discussing tapering one day that has upset
the market," said ING rates strategist Benjamin Schroeder.

Benchmark U.S. 10-year notes were last down
11/32 in price to yield nearly 1.72 percent, up from 1.68
percent late Tuesday.

A report showed U.S. private employers added 154,000 jobs in
September, below economists' expectations, with the more closely
watched U.S. jobs report due on Friday.

The dollar was down 0.04 percent against a basket of
currencies in choppy trading.

Sterling rose 0.3 percent against the dollar, after
dipping below $1.27 and hitting a fresh three-decade low against
the greenback earlier in the session.
(Additional reporting by Barani Krishnan in New York and Nigel
Stephenson in London; Editing by Susan Thomas and Nick
Zieminski)

WASHINGTON, Dec 9 Aetna Inc's chief
executive denied on Friday that its withdrawal from some
Obamacare exchanges was in retaliation for government efforts to
halt its merger with Humana Inc, as he sought to
convince a federal judge to approve the deal.

LOS ANGELES, Dec 9 President-elect Donald Trump
will remain an executive producer on the reality TV show
"Celebrity Apprentice," new host Arnold Schwarzenegger said on
Friday, defending the situation as similar to his own
transitions between politics and entertainment.